Multifactor Model for Assessing the Investment Attractiveness of the Enterprise

Abstract

When it comes directly to investors, the importance of assessing investment attractiveness lies in the fact that the analysis of the enterprise and its investment attractiveness allows minimising the investment risks. The modern literature distinguishes various methods of analysing and assessing the investment attractiveness of an enterprise, but there is no single generally accepted universal assessment system. The disadvantage of most methods is the assessment of solely financial indicators, such as profitability, liquidity, asset turnover, etc., without consideration of the investment attractiveness factors of the country and region, as well as indicators of attractiveness and dynamics of development of the industry where the enterprise in question operates. For a comprehensive, objective assessment, it is necessary to start with macroparameters, and then proceed to the analysis of indicators that directly relate to the company's activities. The originality of this study is the development of a multifactor model for assessing the investment attractiveness of an organisation of any form of ownership, considering the specific features of the state, region, and industry of the enterprise, as well as a system of economic and non-economic indicators for the direct activities of the organisation. The methodology becomes complete and multi-parameter through the study of indicators such as stability of the political situation in the country, national level of labour migration, stability of national currency, level of education and security in the region, ease of doing business, level of official salary, as well as financial position of the enterprise and the reputation of its management, etc. In addition, the proposed set of indicators creates a universal method for assessing the investment attractiveness of an enterprise, which can be applied regardless of the form of ownership of the organisation, its size and scope of activity. For greater objectivity of this study, the authors propose a rating method for assessing the investment attractiveness of enterprises, and a point system for evaluating indicators simplifies the interpretation of the results

Keywords

• investment
• investment climate
• investment attractiveness
• investment attractiveness indicators